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New Jersey Realty Concepts, LLC v. Mavroudis

Superior Court of New Jersey, Appellate Division

March 19, 2014

NEW JERSEY REALTY CONCEPTS, LLC, THOMAS DINARDO, JOSEPH F. BELASCO, JR., Plaintiffs,
v.
JOHN MAVROUDIS, MICHAEL MAVROUDIS, INDUSTRIAL CONDOMINIUM ASSOCIATES, LLC, RIO VISTA PROPERTIES LLC, LAW FIRM OF MAVROUDIS & RIZZO, RIO VISTA CONSTRUCTION COMPANY LLC, RIO VISTA MANAGEMENT LLC, RIO VISTA NORTHVALE, LLC, RIO VISTA PROPERTIES 690 LLC, RIO VISTA MEDICAL LLC, RIO VISTA REALTY LLC, RIO VISTA RENTALS LLC, RIO VISTA SNOW LLC, JM MAVROUDIS MANAGEMENT CO., ANNE MAVROUDIS, NEW JERSEY HEALTH CARE CENTER LLC, 680 MEDICAL GROUP LLC, ASC PARTICIPANTS LLC, IMAGING CENTER OF ORADELL LLC, PRESCRIPTION DISPENSARY OF ORADELL LLC, LAB TECHNOLOGIES OF ORADELL LLC, AND URGENT CARE CENTER OF ORADELL LLC, Defendants

Argued November 12, 2013.

Approved for Publication March 19, 2014.

Page 239

On appeal from the Superior Court of New Jersey, Chancery Division, Bergen County, Docket No. C-230-11.

Darryl T. Garvin argued the cause for appellant William Earnshaw D/B/A Accent on Design.

Stephen P. Sinisi argued the cause for respondent Special Fiscal Agent ( Law Offices of Stephen P. Sinisi, Esq., LLC, attorneys; Mr. Sinisi and Robert L. Falkenstern, on the brief).

Before YANNOTTI, ASHRAFI and LEONE Judges.

OPINION

Page 240

[435 N.J.Super. 121] LEONE, J.S.C.

Appellant William Earnshaw appeals the orders of the Chancery Division quashing and vacating his writ of execution and notice of levy to execute a judgment issued by the Law Division. We reverse and remand.

I.

Earnshaw does business as Accent on Design. Pursuant to a contract with Rio Vista Properties, LLC (Rio), Earnshaw designed and installed custom cabinets and countertops for most of the [435 N.J.Super. 122] offices in a medical office building (the Property) in Oradell. Rio failed to pay invoices from Earnshaw. Believing Rio to be the sole owner of the Property, Earnshaw filed suit against Rio and John Mavroudis, a managing agent for the Property. In November 2011, the Law Division granted Earnshaw partial summary judgment for contract damages. On February 17, 2012, the Law Division entered a final judgment against Rio in the amount of $100,918.

In fact, the Property was owned 60% by Rio and 40% by New Jersey Realty Concepts, LLC (NJRC), as tenants in common. Rio and NJRC leased the building to medical tenants whose rents were collected by Mavroudis.

Alleging misappropriation of funds, NJRC and others sued Rio, John Mavroudis, his partner Michael Mavroudis, and others in the Chancery Division. On January 9, 2012, the Chancery Division judge removed John and Michael Mavroudis (Mavroudis Defendants) as managing agents for the Property. The judge appointed respondent Steven Sinisi as the Special Fiscal Agent (SFA), giving him managerial authority over the Property.

Earnshaw, now aware of the Property's ownership and management situation, forwarded the February 17, 2012 judgment to the SFA. After the parties negotiated unsuccessfully, Earnshaw recorded the judgment as a lien. The Law Division issued a writ of execution for $100,918. To obtain the 60% of the rents believed due to Rio, the Sheriff issued a notice of levy and executed the writ ...


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